Dear Valued Trader:

Effective June 16th, 2008 all pattern day trading accounts with less than $25,000 in equity will be required to trade in cash. Accounts with less than $25,000 in total equity may still use their cash buying power to place a trade, but must wait until the trade settles to reuse the funds on the fourth business day.

If your account has less than $25,000 and you want to trade on margin, you can fund your account to greater than $25,000 to day trade at 4:1 intraday margin and 2:1 to hold positions overnight.

This change is based on Penson’s and Mastertrader’s interpretation of the Financial Industry Regulatory Authority (FINRA)’s Conduct Rule 2520. For additional information, please visit:

FINRA - Day Trading Margin Requirements: Know the Rules
http://www.finra.org/InvestorInformation/InvestmentChoices/DayTradingInformation/p005906.

If after reading the above link you have further questions, please call our trade desk at 888-692-3624. We greatly appreciate your business and urge you to contact us with any questions or concerns regarding this matter.

Thank you,

Mastertrader.com
7-11 South Broadway, Suite 210A
White Plains, NY 10601

The risk of loss in electronic trading can be substantial. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. System access and trade executions may be delayed or fail due to market volatility, system failure, high volume or other factors. To read important disclosures, click on the following four links Day Trading Risk Disclosure, Margin Disclosure, Futures Risk Disclosure and the Characteristics and Risks of Standardized Options.